I'm admittedly not an advanced economist, however, I don't see anything deflating. If anything, based on all the fake money they've pumped into the system in the last year, i'd think hyper inflation is more likely.There are fears that deflation is coming. Everyone mortgaged themselves up to their eyeballs with the last drop in rates. The fear is that the payments from all the new debt will eat away at discretionary income and cause a demand crash. The covid related property, sales, and state income tax increases haven't hit yet. This happened after 9/11. Next year everyone is gonna get a love letter from their county assessor telling them just how much their home taxes are going up. This will have to be counteracted by perpetual stimulus.
I fancy myself quite the economist, and I don't have any idea which way it's going to go. If the pump keeps pumping, I think you're 100% right. The median home price will be $500,000, a stock F-150 will be $100,000, and hamburger will be $12/lb while the feedlots go broke. If they don't pump, I could see it all coming down. Debts go bad, assets deflate, consumption grinds to a halt.I'm admittedly not an advanced economist, however, I don't see anything deflating. If anything, based on all the fake money they've pumped into the system in the last year, i'd think hyper inflation is more likely.
Interest rates may be down but the prices houses are going for is just plain insane. I'm glad I bought my house after the bubble burst. It IS going to happen again. That would be a hard pass for me.Well deer season is over for me, so it's time to work on the portfolio.
Just got out of Tesla and Amazon. Moved most of it to AT&T and Apple. I'm done with most of the Corona related stuff. ANGI, Netflix, etc. Moved that mostly into gold.
Boeing is in trouble again, so I will probably get more into that in the coming week.
Marathon oil is up, but I think it will go even firther, so I'm holding it.
With interest rates down, I'm looking at borrowing money to buy more real estate. Otherwise I might met everything rest for a while.
Interest rates may be down but the prices houses are going for is just plain insane. I'm glad I bought my house after the bubble burst. It IS going to happen again. That would be a hard pass for me.
Does anyone on here have Bitcoin? I won't touch it personally, but wow it is on fire?
Don't know anything about crypto. Don't plan to either. Seems like another tulip mania.Does anyone on here have Bitcoin? I won't touch it personally, but wow it is on fire?
Don't know anything about crypto. Don't plan to either. Seems like another tulip mania.
There were many fortunes made in stuff that has eventually gone under. That requires knowing when to hop off. Enron, Tyco, GE, GM, AIG, countless MLPs, etc. I've never been able to tell when to hop off. I've seen talk of bitcoin $250,000 as the dollar withers away to nothing. How to do it? I have no idea. Peter Schiff has a podcast where he's been talking almost exclusively about bitcoin lately. He's a gold bug, so this bitcoin stuff really gets under his skin. He's also a believer in market forces, and that has been a losing strategy for a long time when the fed is standing there ready with an unlimited supply of 1's and 0's on a keyboard to hold up a market.
My girlfriend's brother isn't in his mid-30s yet and is a millionaire several times over all because of bitcoin. He originally got in early, and then created businesses around it. His position is stronger than it's ever been from an investment standpoint. He doesn't push it too hard to me, but to my girlfriend he is practically begging her to be buying more.
I don't understand it myself nor do I see it being used as anything other than an investment vehicle. I agree with SD and think of it as modern day tulip bulb boom. I can't really argue with him being right about it multiple times over though.